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What are the realized returns for the stock market, for Small Companies, Large Companies; long term...

  1. What are the realized returns for the stock market, for Small Companies, Large Companies; long term Bonds, Long Term Gov Bonds, and US T Bills? What investment portfolio would you select (do not include names of mutual funds or stocks, just overall types of investments.)?

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Expert Solution

Rate of realised returns for a small company in the longer period of time have generally been higher than the larger company because a smaller companies tends to outperform the larger companies due to growth abilities.

larger company generally have a stable rate of return and they are offering more return than bonds and other securities in the market.

long term bonds are generally corporate bonds and they are offering a higher return than treasury bonds in the United States market and they will be offering with uniform rate of return.

Long term Government Bonds are treasury bonds and they have a low risk associated with them and uniform payment as they have provided with the lower rate of return as they are highly secure.

Treasury bills are short term treasury instruments which are also providing with the secured investment and offering with very low rate of return.

If I have to select the investment portfolio then I will be looking for selection of diversified asset portfolios in which I will be including a blend of equity shares which will be majorly focus that is small and midcap firms which have a possibility of growing and I will also protect it through addition of Corporate bonds and I will also try to add cryptocurrencies because I am having highly aggressive strategy as I am young investor & I have the time to maximize my rate of return.

jeff jeffy answered 1 year ago
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